On Tuesday, spot gold prices rose 0.4 percent to close at $1210.6 per ounce having drifted near $1,200 an ounce this week, as the U.S. dollar fell versus China’s yuan against a backdrop of U.S. – China trade tensions. Chinese shares jumped the most in more than two years on investor hopes of fresh government spending and amid a pause in the trade tensions, while the dollar slid versus the yuan and a currency basket. The United States will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on Aug. 23, the U.S. Trade Representative’s office said on Tuesday as it published a final tariff list targeting 279 imported product lines. On the MCX, gold prices declined marginally by 0.11 percent to close at Rs.29597 per 10 gms.
Imposition of tariffs by the US on Chinese imports on August 23 and fresh government spending by China are possible near term factors for the rise in yellow metal. On the MCX, gold prices are expected to trade higher today, international markets are trading higher by 0.22 percent at $1213 per ounce.